Under Armour, Inc. (UA) has reported 0.66 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $104.91 million in the quarter, compared with $105.60 million for the same period last year. Revenue during the quarter grew 11.74 percent to $1,308.13 million from $1,170.69 million in the previous year period. Gross margin for the quarter contracted 314 basis points over the previous year period to 44.84 percent. Total expenses were 87.25 percent of quarterly revenues, up from 84.83 percent for the same period last year. That has resulted in a contraction of 242 basis points in operating margin to 12.75 percent.
Operating income for the quarter was $166.75 million, compared with $177.58 million in the previous year period.
"We are incredibly proud that in 2016, we once again posted record revenue and earnings, however, numerous challenges and disruptions in North American retail tempered our fourth quarter results," said Kevin Plank, Under Armour chairman and chief executive officer. "The strength of our Brand, an unparalleled connection with our consumers and the continuation of investments in our fastest growing businesses -- footwear, international and direct-to-consumer -- give us great confidence in our ability to navigate the current retail environment, execute against our long-term growth strategy and create value to our shareholders."
Under Armour projects revenue to be $5,400 million for financial year 2017. Under Armour forecasts revenue to grow in the range of 11 percent to 12 percent for the fiscal year 2017.
Operating cash flow turns positiveUnder Armour, Inc. has generated cash of $304.49 million from operating activities during the year as against cash outgo of $44.10 million in the last year. The company has spent $381.14 million cash to meet investing activities during the year as against cash outgo of $847.48 million in the last year.
Cash flow from financing activities was $206 million for the year, down 53.19 percent or $234.08 million, when compared with the last year.
Cash and cash equivalents stood at $250.47 million as on Dec. 31, 2016, up 92.89 percent or $120.62 million from $129.85 million on Dec. 31, 2015.
Working capital increases sharply
Under Armour, Inc. has recorded an increase in the working capital over the last year. It stood at $1,282.19 million as at Dec. 31, 2016, up 25.71 percent or $262.24 million from $1,019.95 million on Dec. 31, 2015. Current ratio was at 2.85 as on Dec. 31, 2016, down from 3.13 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 54 days for the quarter from 61 days for the last year period. Days sales outstanding went up to 22 days for the quarter compared with 17 days for the same period last year.
Days inventory outstanding was almost stable at 58 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 27 days for the quarter from 15 for the same period last year.
Debt moves up
Under Armour, Inc. has witnessed an increase in total debt over the last one year. It stood at $817.39 million as on Dec. 31, 2016, up 22.18 percent or $148.39 million from $669 million on Dec. 31, 2015. Total debt was 22.36 percent of total assets as on Dec. 31, 2016, compared with 23.32 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.40 as on Dec. 31, 2016, when compared with the last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
